FPI Path to India Eased; New Rulebook for IPOs | Sebi eases entry norms for foreign portfolio investors to boost Indian IPO market

The Securities and Exchange Board of India (Sebi) has decided to relax entry norms for foreign portfolio investors (FPIs), seeking to counter their continued withdrawal from the nation’s equity market. The regulator eased initial public offering (IPO) issue sizes for large Indian companies to strengthen an already impressive pipeline of share sales that could hit a record this year. At its board meeting on Friday, Sebi decided to allocate a quota to insurance companies and pension funds in the anchor books of IPOs, while reducing the minimum investment limit in long-value private equity (PE) funds to boost investor participation, among several steps to bolster the capital markets. “This will pave the way for larger unlisted companies to become public more seamlessly,” said Arka Mookerjee, partner, JSA Advocates & Solicitors. “Most importantly, Sebi has adopted a multi-pronged approach to increasing institutional participation in IPOs, with public shareholding threshold relaxations, additional QIB (qualified institutional buyer) participation and increasing timeline for compliance.” Read more